Uncertainty and feasibility studies: an Italian case study

Uncertainty affects all aspects of the property market but one area where the impact of uncertainty is particularly significant is within feasibility analyses. Any development is impacted by differences between market conditions at the conception of the project and the market realities at the time of completion. The feasibility study needs to address the possible outcomes based on an understanding of the current market. This requires the appraiser to forecast the most likely outcome relating to the sale price of the completed development, the construction costs and the timing of both. It also requires the appraiser to understand the impact of finance on the project. All these issues are time sensitive and analysis needs to be undertaken to show the impact of time to the viability of the project. The future is uncertain and a full feasibility analysis should be able to model the upside and downside risk pertaining to a range of possible outcomes. Feasibility studies are extensively used in Italy to determine land value but they tend to be single point analysis based upon a single set of “likely” inputs. In this paper we look at the practical impact of uncertainty in variables using a simulation model (Crystal Ball ©) with an actual case study of an urban redevelopment plan for an Italian Municipality. This allows the appraiser to address the issues of uncertainty involved and thus provide the decision maker with a better understanding of the risk of development. This technique is then refined using a “two-dimensional technique” to distinguish between “uncertainty” and “variability” and thus create a more robust model.

People or machines? Assessing the impacts of smart meters and load controllers in Italian office spaces

Government initiatives in several developed and developing countries to roll-out smart meters call for research on the sustainability impacts of these devices. In principle smart meters bring about higher control over energy theft and lower consumption, but require a high level of engagement by end-users. An alternative consists of load controllers, which control the load according to pre-set parameters. To date, research has focused on the impacts of these two alternatives separately. This study compares the sustainability impacts of smart meters and load controllers in an occupied office building in Italy. The assessment is carried out on three different floors of the same building. Findings show that demand reductions associated with a smart meter device are 5.2% higher than demand reductions associated with the load controller.

Impegno nero: Italian intellectuals and the African-American struggle

In the aftermath of the Second World War, Italian intellectuals participated in Italy’s reconstruction with an ideological commitment inspired by the African-American struggle for equal rights in the United States. Drawing on the work of many of the leading figures in postwar Italian culture, including Italo Calvino, Giorgio Caproni, Cesare Pavese, and Elio Vittorini, this essay argues that Italian intellectual impegno—defined as the effort to remake Italian culture and to guide Italian social reform—was united with a significant investment in the African-American cause. The author terms this tendency impegno nero and traces its development in the critical reception of African-American writers including W.E.B. DuBois, Langston Hughes, and Richard Wright. Postwar impegno nero is then contrasted with the treatment of African-American themes under Fascism, when commentators had likewise condemned American racism, but had paradoxically linked their laments for the plight of African Americans with defenses of the racial policies of the Fascist regime. Indeed, Fascist colonialism and anti-Semitism were both justified through references to what Fascist intellectuals believed to be America’s greater injustices. After 1945, in contrast, Italian intellectuals advocated an international, interdependent campaign for justice, symbolizing national reforms by projecting them onto an emblematic America. In this way, impegno nero revived and revised the celebrated "myth of America" that had developed in Italy between the world wars. Advancing a new, postwar myth, Italian intellectuals adopted the African-American struggle in order to reinforce their own efforts in the ongoing struggle for justice in Italy.